Forex Market Report

EUR/USD now alternates gains with losses ahead of the opening bell across the pond, managing to stage a rebound from 1.1690 to the vicinity of 1.1730, where met some decent hurdle. Spot keeps navigating the upper end of the recent range above 1.1700 the figure amidst a generalized sideline theme in the global markets. On the USD-side, the greenback stays trapped within a tight range against the backdrop of rising yields in the US 10-year note and always wary of headlines coming from the US-China trade dispute. In the docket, US Chicago Fed index rebounded to 0.43 in June, while Existing Home Sales during the same period are due later. At the moment, the pair is losing 0.05% at 1.1714 and a breakdown of 1.1690 (10-day sma) would target 1.1676 (21-day sma) and then 1.1575 (low Jul.19). On the flip side, the next hurdle at 1.1748 (high Jul.17) followed by 1.1792 (high Jul.9) and finally 1.1853 (high Jun.14).

GBP/USD

The GBP/USD pair quickly reversed an early European session dip to 1.3113, albeit continued with its struggle to make it immediate barrier near mid-1.3100s. Despite a bearish development, wherein the EU leaders rejected the UK PM Theresa May’s current Brexit plan, the pair continued gaining positive traction at the start of a new trading week and was supported by a follow-through US Dollar selling bias. The US President Donald Trump’s comments on Friday, showing displeasure over the Fed’s
monetary tightening and the recent dollar strength, kept the USD bulls on the defensive and helped the pair to build on last week’s goodish rebound from YTD lows. The bullish momentum, however, lacked any strong conviction, with easing USD bearish pressure capping the pair near a confluence resistance comprising of 200-hour SMA and 50% Fibonacci retracement level of the 1.3363-1.2957 recent downfall.